Shell, Petronas sign Iraq oil deal
The Hague, January 17, 2010
Shell and Petronas have signed a 20-year service contract to provide technical assistance in the development of the Majnoon oilfield in Iraq.
The contract was signed by the South Oil Company and the Missan Oil Company of Iraq, Shell Iraq Petroleum Development and Petronas Carigali.
“Iraq’s oil and gas reserves are among the largest in the world and we look forward to applying our experience and technology to support ongoing efforts to rebuild the country’s energy infrastructure,” said Shell’s CEO Peter Vosser.
Shell, as lead operator, will hold a 45 per cent share, with partner Petronas holding 30 per cent. The Iraqi state holds 25 per cent of the participating interests in all contractor consortia.
The consortium targets a production plateau of 1.8 million barrels of oil per day, up from a current level of approximately 45,000 barrels of oil per day. Majnoon, located in southern Iraq, is one of the world’s largest oil fields.
The signing follows the contract award on December 11, 2009 and the approval of the Iraqi Council of Ministers on January 5, 2010.- TradeArabia News Service